This past weekend was meant to be a time of relaxation and productive lawn care. Armed with my trusty lawn mower, I had envisioned transforming my backyard into a pristine oasis. However, fate had a different plan in store for me. As I eagerly pulled the starter cord the deafening silence that followed was a clear indication that my loyal companion had decided to take an unexpected hiatus.
What followed was a weekend of embarking on a quest for a new lawn mower. I delved into a world research and exploration. Armed with my laptop, I read expert reviews, scoured online forums and compared various models. I studied cutting width, battery powered, electric and gas-powered options. I weighed pros and cons, narrowed down my options and found the perfect lawn mower.
Finding a financial planner is like buying a new lawn mower. Just as a lawn mower helps you maintain a well-manicured lawn, a financial planner assists you in maintaining a healthy and prosperous financial life.
There are almost 100,000 financial services professionals in Canada. The Financial Consumer Agency of Canada (FCAC) reports that anyone can hold themselves out as a financial planner. The terms ‘financial advisor’ and ‘financial planner’ don’t always mean that a person has specific qualifications.
When you partner with someone to help manage your finances, you want to ensure that they are a trusted partner with only your interests and goals in mind. You need to find someone who understands your unique financial situation and goals. They should have expertise in areas that align with your needs, such as investment strategies, retirement planning and tax reduction strategies.
In both cases, you want a reliable and trustworthy product or service. A lawnmower should be durable, efficient and capable of delivering consistent performance. Similarly, a financial planner should have a solid track record, be knowledgeable about financial markets and regulations and possess the necessary credentials and qualifications.
Just as you might read reviews or seek recommendations before purchasing a lawn mower, you should also research and gather information about potential financial professional. Look for testimonials, check their credentials, and seek referrals from friends, family, or other professionals.
Here are 10 questions to ask when you are considering hiring a financial professional:
- What are your qualifications and credentials?
- Are you a fiduciary? (a fiduciary is legally obligated to act in your best interest.)
- What services do you provide beyond investment management? (Estate planning, retirement planning, tax planning, etc.)
- Can you provide references or testimonials from current clients?
- How do you determine your fees? Are they based on a percentage of assets, an hourly rate or fixed fee?
- How will you communicate with me and keep me updated on my financial situation?
- Do you have any specialties or areas of expertise?
- Are you registered with any regulatory bodies or professional organizations?
- What is your investment philosophy? How do you choose investments for clients?
- How do you stay updated on changes in the financial industry and market trends?
Remember to ask follow-up questions to gain a deeper understanding of the advisor’s approach and determine if they align with your financial goals and values. It's crucial to choose a financial professional who's knowledgeable, trustworthy and capable of meeting your specific needs.
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